Brush up on three common fraud schemes and learn how to help prevent them at your business.

As a proud supporter of International Fraud Awareness Week, ADP leaders Tim Ogden, VP, Fraud Prevention, and Steve Lenderman, Director, Strategic Fraud Prevention, share some common types of fraud and simple but effective ways to prevent them from happening to you and your business.

Out-of-office fraud

What is it?

With the holiday season just around the corner, you'll probably be using out-of-office (OOO) messages a lot more. While OOO messages are a courteous way to let others know that you won't be working, you could be giving away valuable information to potential fraudsters.

Think about it, the standard OOO message includes the contact's full name, office address, phone number, job title, and line of work. In the hands of a fraudster, this information can be used to impersonate you to get information or money from an unsuspecting coworker.

Help prevent it by:

The next time you write an OOO message, remember to keep it vague. Don't provide unnecessary contact information, especially if you'll be using the message for external contacts. Ask yourself, "Would I share this information with a stranger?" If the answer is no, do not include it in your OOO message.

Business email compromise fraud

What is it?

Business email compromise (BEC) fraud is a type of phishing attack in which a fraudster attempts to impersonate a known contact, such as a high-level executive or trusted colleague, to trick a recipient into transferring funds into a fraudulent account. BEC fraud usually doesn't rely on links or attachments, making it harder to spot than the average phishing email.

Help prevent it by:

Be aware of what you are posting on social media and who has access to your profile. If you are sharing a lot of private details on a public account, you increase the risk of a fraudster impersonating you. You should also always be cautious when answering unsolicited phone calls or emails, and make sure to verify that a request for money or data is legitimate by calling a known and verified number for confirmation.

Insider fraud

What is it?

Insider fraud is carried out by a current or former employee, contractor, or business partner who takes advantage of the data or processes they had access to in order to complete their job.

Help prevent it by:

You can help prevent insider fraud by implementing a strong system of clearly documented internal controls, both security and physical. It is also helpful to foster a company culture that promotes accountability, honesty, and transparency. The more your employees understand security best practices, the better prepared they'll be for handling data or information correctly.

These three types of fraud are common, but by using these simple best practices every day, you can help prevent fraudulent activity from occurring both at work and at home.

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